The International Franchise Association continues its tireless support of small business with a win on Thursday, March 28. After urging the franchise community for support, the H.R. 7010 – Paycheck Protection Program Flexibility Act was passed in the House by a vote of 417-1. The IFA led the business community coalition in support of the measure and sent a letter to Speaker Pelosi and Minority Leader McCarthy that included support from NFIB, the U.S. Chamber and multiple franchisee associations.
The bill changes the PPP in these ways:
- Changes the 75/25 payroll requirement to a 60/40 requirement for full loan forgiveness
- Extends the loan use period from 8 weeks to 24 weeks, while still allowing borrowers to elect an 8-week period
- Extends the program expiration date from June 30, 2020 to December 31, 2020
- Lengthens the loan term for new loans from 2 to 5 years
- Allow PPP recipients to defer payroll taxes on PPP loan proceeds
The bill now moves to the Senate, where the IFA hopes for quick consideration. The Franchise Action Network is asking the franchise community to contact their senators in support of this legislation. Click here to contact your senators.